Bank of Canada holds rate steady (ZT)

MORTGAGEWISE

The Bank of Canada held steady on interest rates Tuesday, keeping its key lending rate at 4.25 per cent, saying that a weaker U.S. economy and a stronger loonie will moderate domestic growth.
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' l" c$ d6 J+ L# f  W+ H7 pIt was the first pause after seven consecutive quarter-point rate hikes that began last September.
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/ |5 e' F# ~. J. {- f: F0 Q“The current level of the target for the overnight rate is judged at this time to be consistent with achieving the inflation target over the medium term,” the central bank said in a statement. “Risks to the projection remain roughly balanced, with a small tilt to the downside later in the projection period related to global imbalances.”
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  L% t7 m; E/ u0 _The bank said consumer price inflation rate has risen above its 2 per cent target largely because of the increase in energy prices, while core inflation has climbed to 2 per cent faster than was expected. The bank added that it expects core inflation will remain around 2 per cent throughout 2008.

# U& P: j6 |: V4 V1 [' d) R“Today's generally stand-pat statement was seen as quite dovish, and the Canadian dollar has weakened markedly and bonds have rallied — an appropriate response," Mr. Porter said. “The bank simply believes that its work is done, and needs a lot of convincing to get off the sidelines.”
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2 y# R& f0 l* _0 N2 i& t( E5 n; {Economists were split on whether the central bank was going to raise its rate this time round. But expectations of an increase dropped last week when the June employment data showed a 4,600 decline in the number of jobs, countering expectations for a gain of 10,000, while unemployment held at a 32-year low of 6.1 per cent.

+ L( \4 t( j" C5 ~/ j, BThe target rate for overnight loans between commercial banks is set eight times a year. The next setting will take place on Sept. 6. Most economists believe there will be one more rate increase before the end of 2006.
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0 q# \* X- v: X7 t[ 本帖最后由 MORTGAGEWISE 于 2006-7-11 08:09 编辑 ]

MORTGAGEWISE

央行公布隔夜贷款利率保持不变， 打消了各家银行的升息疑虑， 固定利率应该会略有下调。 这无疑会进一步增强购房者的信心。